Is It Better To Buy Or Rent?

Until recently, the perennial real estate question of whether to rent or buy was dead. During the boom years, the question was largely irrelevant as people refused to pay ever increasing prices for already expensive real estate. But now that national home prices have slid substantially and potential buyers are being more cautious, the debate has been reinvigorated.
Unlike home prices, rents tend to rise or fall just a few percentage points each year. Economists generally hold that anything below 15 times the annual rent is a buyer-friendly city.
Individual circumstances matter—people in higher tax brackets, for example, may get more bang for their purchase buck because they are able to deduct more interest costs and property taxes. And, once people purchase, their home-buying costs tend to be fairly stable. Fixed-rate loans don’t go up (although taxes and maintenance costs can.) Rents usually do.
Buyers often feel more invested in their communities, more likely to put down roots, make friends and join local organizations. Home ownership often brings them pride and joy. CNN